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What is the accounting treatment if a company purchases a patent of a competitive product?

  
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What is the accounting treatment if a company purchases a patent of a competitive product?

Postby coinleain » Wed Feb 29, 2012 10:25 am

Like if your company manufactures a certain product, and there is a patent for another product on the market that is similar to yours and also is competitive to your product, would the purchase of this patent be amortized like any other patent purchase, or is there a different treatment?
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What is the accounting treatment if a company purchases a patent of a competitive product?

Postby aethelbert35 » Wed Feb 29, 2012 10:35 am

Like if your company manufactures a certain product, and there is a patent for another product on the market that is similar to yours and also is competitive to your product, would the purchase of this patent be amortized like any other patent purchase, or is there a different treatment?
Same treatment, although there may be "anti-competition" investigation if the patent collection is abused.
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